PepsiCo Acquires Poppi in $1.95 Billion Deal to Expand Functional Beverage Portfolio
PepsiCo has announced the acquisition of Poppi, a prebiotic soda brand, in a deal valued at $1.95 billion. The move strengthens PepsiCo’s position in the functional beverage segment, responding to growing consumer demand for gut-health-focused drinks.
Strategic Expansion in Functional Beverages
Poppi, known for its apple cider vinegar-infused sodas, has seen rapid growth in the health-conscious beverage market. The brand’s appeal lies in its low-sugar, prebiotic formulations that cater to consumers seeking digestive health benefits without compromising on taste.
PepsiCo previously invested in Poppi through its venture arm, PepsiCo Ventures, and was an early stakeholder in the brand. The full acquisition marks a significant step in scaling Poppi’s presence and integrating it into PepsiCo’s expanding portfolio of better-for-you beverages.
Capitalizing on Consumer Health Trends
The functional beverage category has gained momentum as consumers increasingly prioritize health and wellness. According to market research, digestive health products and prebiotic drinks have witnessed double-digit growth, driven by demand for gut-friendly ingredients.
By acquiring Poppi, PepsiCo strengthens its competitive edge in this fast-growing category, complementing previous investments in health-focused brands like Kevita and SodaStream.
Market Implications
This acquisition signals major players’ continued commitment to diversifying away from traditional carbonated soft drinks. With consumers shifting toward beverages that offer added functionality, established brands are adapting by integrating wellness-oriented options into their portfolios.
Poppi’s existing distribution network and strong digital-first marketing presence align with PepsiCo’s strategy of targeting younger, health-conscious consumers. Industry analysts expect PepsiCo to leverage its global scale to further accelerate Poppi’s growth, potentially introducing the brand to international markets.
What’s Next?
PepsiCo’s investment in Poppi underscores the rising influence of functional beverages in shaping the future of the industry. As large brands continue to acquire emerging players in the health and wellness space, FMCG professionals can expect continued innovation and heightened competition in the segment.
The deal is set to close pending regulatory approvals, positioning Poppi for significant expansion under the Pepsi